It seems obvious that engaged employees are much more likely to perform better than others, but is there any evidence? And is there a commercial benefit?
In fact, there is a proven link between employee engagement, customer satisfaction and profitability.
US retailer Sears' research showed that a 5% increase in store-level employee engagement led to a 1.5% increase in customer satisfaction and .5% increase in store revenue*. This link has been annually audited and confirmed.
So engaged employees can lead to greater profitability.
What do we measure?
*The Employee-Customer-Profit Chain at Sears, Rucci AJ, Kim, SP and Quinn, RT, Harvard Business Review, Jan-Feb 1998